Co-operatives

No horizon too far for Silver co-op
Co-operatives are social enterprises that are run and owned by their own members. In the first of a four-part series, we speak to Silver Horizon Travel Co-operative. Its objective: Let more seniors see the world the way they want to see it
By Tee Zhuo, The Straits Times, 14 May 2014

RETIREES usually look forward to putting their feet up after years at the coalface but that wasn't how former corporate professionals Helen Lim and Sally Kang were going to spend their golden years.

Taking the adage "if you want something done well, do it yourself" to heart, they started the Silver Horizon Travel Co-operative.

The social enterprise organises group vacations for people over the age of 40, with "silver-friendly" travel itineraries including pre- and post-trip bonding sessions for members.

Mrs Lim, a former human resources professional, uses her corporate skills to chair the enterprise while 62-year-old Ms Kang, who is an accountant by training, is treasurer.

Like many other business ventures, Silver Horizon started out with a chat over coffee. The idea was first mooted back in 2010 during one of many typical gatherings of seniors at a cafe Mrs Lim, 67, used to own and operate.

Many of those present had heard or experienced first-hand how travel agencies often get it wrong for seniors, by planning visits to monuments that require climbing hundreds of steps, day after day of theme parks, and long periods just for shopping.

The idea that emerged was a simple one: Let more seniors see the world the way they want to see it.

"We realised that as a group of people, we should come together to do the kind of travel we want... take things into our own hands," said Mrs Lim.

It took a while to get going but by February 2012, enough people were gathered to launch Silver Horizon, with the help of the Singapore National Co-operative Federation (SNCF).

The SNCF guided the co-operative through the application process and provided it with a business framework and even a relationship manager, which provided much-needed governance right from the start, said Mrs Lim.

The 18 founding members bought between $1,000 and $5,000 worth of Silver Horizon's shares each at $50 per share, giving the co-op its starting fund of about $45,000.

They decided to set up the body as a co-operative and not a company as they wanted it to be focused on the members first and foremost.

Co-operatives are social enterprises but beyond that they have a specific membership base, unlike "normal" companies where potentially anyone can become a shareholder or investor.

As SNCF chief executive Dolly Goh puts it, co-operatives "are formed by members, for members". "(This makes) them the best advocates of their own social mission by running sustainable enterprises," she noted in a statement.

Silver Horizon has been operating at a loss so far, in part due to costs from designing and running its website, and registration and annual fees paid to SNCF, but the gap is narrowing. Ms Kang expects to operate in the black by this year.

Numbers, both in terms of members and finances, remain very important to the group.

"The power of numbers is very important. With a large group, we have more bargaining power," said Mrs Lim.

It is also more likely that there would be enough members interested in any one destination to make planning a trip worth it, she added.

The co-operative now has about 200 members - the oldest aged 86 and the youngest, 41 - as well as funds of $75,000.

It works with major travel agencies to come up with customised group tour packages that are more senior-friendly. These could include well-paced itineraries that do not require too much walking and meals that are less oily or salty. It also bargains for lower prices.

The co-operative has one request it always makes: "Regular toilet breaks," Mrs Lim said with a chuckle.

In addition, it holds bonding sessions for tour participants before and after the trips.

Before departure, these can include briefings on administrative details. After the trip is over, a second gathering is held for fellow travellers to connect and even discuss the next possible destination.

Mrs Lim said the gatherings help seniors to stay social and active. She added that loneliness is a problem, something she herself is aware of as she enters "the ageing arena".

"Sometimes, (the travellers) come by themselves, and even if they have friends, (their friends) might not have the time to travel. So we provide a platform for these 'singles' to connect with each other."

The co-operative actively facilitates such meet-ups.

For a trip last month to Meizhou in China's Guangdong province, Silver Horizon arranged for two single women - both in their 60s - to meet privately first and see if they could be roommates. The two have since become good friends and travel buddies.

Silver Horizon tries to organise at least one trip a month and has already sent travellers to Siem Reap, Cambodia, and Tanjung Pinang in Indonesia's Riau Islands, so far this year.

Its bargaining power means the prices are often lower than those for similar jaunts.

A 10-day tour to Switzerland in August last year cost only $3,000 per person, and that included visits to pricey cities like Geneva, Zurich and Lucerne and even flights on Singapore Airlines. That kind of trip could set a person back $4,000 or more on the open market.

The co-operative's social mission also extends beyond its own members.

In May last year, Silver Horizon partnered with the Lions Befrienders Service Association - a voluntary welfare organisation for the elderly - to take a group of underprivileged seniors to Malacca.

Some of those seniors had never travelled overseas before and some did not even have passports.

The trip was made possible by a $3,000 donation from Mr Goh Khee Kuan, 66, who was inspired after hearing a speech by Mrs Lim on the co-operative.

The sum not only funded part of the trip but also some of the fees needed to apply for or renew the seniors' passports.

The co-op has no staff and no functioning office, with only an address for registration and mailing purposes.

The founding members see it as mostly a labour of love, with the executive committee working on a voluntary basis for no pay.

But this is set to change soon. Mrs Lim and Ms Kang said they will soon hire staff and look for an office with a counter to service potential members and travellers.

They also hope to expand their membership to a thousand by the co-operative's fourth anniversary in February 2016 and want veterans from the travel industry to join them.

For Silver Horizon, "it's not about the profits", Mrs Lim said.

"It's really about the social mission, to help promote active living and learning through customised travel programmes for seniors, and to use travel as platform to build friendships."

What are co-operatives?

HERE is some information on co-ops.

- Co-operatives are owned and democratically controlled by their own members, who decide on the social mission and elect leaders.

- They must have a minimum of 10 members motivated by the purpose of meeting their collective needs, as opposed to companies, which are primarily driven by profits.

- Unlike companies, which register with the Accounting and Corporate Regulatory Authority, co-operatives are regulated by the Registry of Co-operative Societies under the Ministry of Culture, Community and Youth.

- Locally based co-operatives pay levies to the Central Co-operative Fund (CCF), for which SNCF is the secretariat. The funds are used to develop and promote the co-operative movement, and help co-operatives in need.

- Some government aid schemes for small- and medium-sized enterprises, such as the Productivity and Innovation Credit scheme, are not available to co-operatives, but they can apply for grants from the CCF.

- Co-operatives are formed for a variety of functions. Some allow members to seek financial help more easily while others offer broad services such as health care and education.

- Co-operatives may issue dividends, which are surplus revenues returned to members proportionate to their ownership shares.

- Some examples of local co-operatives include NTUC FairPrice Co-operative, the Singapore Police Co-operative Society and TCC Credit Co-operative.

Information from the Singapore National Co-operative Federation (SNCF).

Co-opting retired talent for mutual advantage
Cooperatives are social enterprises that are run and owned by their own members. In the second of a four-part series, we speak to Premier Security Co-operative. Ex-police, military personnel can put expertise to good use amid job crunch
By Ivan Teo, The Straits Times, 21 May 2014

PREMIER Security Co-operative is leading the way when it comes to making smart use of the talents of Singapore's retirees - some in their late 70s.

The organisation was set up in 1984 to provide jobs for retired police and military personnel.

And given the labour crunch affecting this and many other sectors, and the push to employ older workers, Premier is now something of a shining example.

Premier - formed by the merger of the Singapore Police Co-operative Society and the Singapore Government Staff Credit Co-operative Society - provides security officers, 24-hour surveillance and security consultancy services.

Managing director William Seak sums up the enormous value of its personnel. "These retired police and other armed forces officers have spent a lifetime keeping us safe and secure. Now we want to help them back by providing them with another form of security - job security."

The cooperative employs other staff who fulfil the requirements but gives priority to retired police and armed forces officers.

Most of its security officers are in their 40s. The youngest is just 18 and the oldest 78.

"Premier Security provides an opportunity to put their expertise and experience to good use. Security officers do an important job. Our persons and properties are in their hands," Mr Seak says.

However, not everyone is cut out for the job.

Prospective security officers have to possess good physical and mental health, and must also clear a background check by the Police Licensing and Regulatory Department. This means that most of the cooperative's security officers are locals, though there are some from Malaysia.

And in collaboration with training providers NTUC Learning Hub and Kaplan, Premier Security provides basic training courses which prospective security officers must pass in order to be certified.

The cooperative conducts its courses on site as well as at its 5,000 sq ft office in Jalan Besar.

Despite the fairly strict selection criteria, the ranks of security officers in Premier Security have grown over the years.

Starting out with two officers in the 1980s, it now has around 700 security officers and 30 administrative staff.

The cooperative's clients include Resorts World Sentosa, United World College and Lot One mall.

It is Singapore's only cooperative in the security business.

The main challenge confronting the security business is a lack of suitable labour.

"There is an acute shortage of manpower due to the stringent criteria," says Mr Seak.

One way to help tackle the shortage is through the use of equipment such as X-rays and closed-circuit television cameras. Using such equipment also helps improve productivity and lighten the job burden for the security officers, he adds.

Premier Security also provides employees with competitive remuneration and incentives such as the Annual Wage Scheme and quarterly bonuses, he says.

For the past three years, it has also been giving bursaries to staff to help out with their children's education expenses.

The cooperative is a member of the Association of Certified Security Agencies and has been advocating the adoption of the Progressive Wage Model to raise the wages of security officers.

Though higher wages might hurt Premier Security's bottom line, Mr Seak says it is a price the cooperative is willing to pay.

"It is not always a dollar and cents matter for us. We definitely want to help security officers get better pay. We want to do our part to do good."

One way Mr Seak hopes to do that is to improve the image of the security officers.

Security officers command little respect because they are seen as not empowered with much authority - an image that is undeserved, says Mr Seak.

"Security officers look out for irregularities, take necessary precautions and activate the police when the situation demands it. They are our first line of defence."

He also notes that the job of a security officer has become more demanding - they are often asked to give directions, and are also treated as guides.

More soft skills are needed on the job now, Mr Seak says.

But given the lifetime of experience possessed by many of Premier's employees, he is confident they are able to rise to the changing challenges of the industry.

Helping members with head and heart
Cooperatives are social enterprises that are run and owned by their own members. In the third of a four-part series, we speak to TCC Credit Co-operative, which aims to provide the best possible financial and related services to members and their families.
By Rennie Whang, The Straits Times, 28 May 2014

THE notion of getting a degree seemed an impossibility for Mr Santhanaram Jayaram given the debt he was under, but a solution emerged that has changed his life.

The TCC Credit Co-operation stepped in and lent him $60,000 for his bachelor and master's degrees at the Management Development Institute of Singapore (MDIS).

Mr Jayaram, then a senior technician with the Navy, said he did not approach banks as he felt interest rates were higher and he was already paying 24 per cent interest on his credit card debt.

University staff then told him about TCC Credit, which charged an interest rate of 3.5 per cent for study loans at the time, around one percentage point or more less then the banks.

It also allowed him to spread out his payments so even though he graduated in 2003, he finished paying off the loan in 2005.

"TCC helped me draw up a payment plan; they were friendly and professional...[it] was my saviour," said Mr Jayaram, 37.

Cases like his keep Ms Shoba Gunasekaran passionate about her job.

The general manager of TCC Credit said she appreciates she can "make a difference and help members [with debt] carry out their day-to-day activities".

TCC is a co-op so all profits are paid to members through dividends, which average 3 to 5 per cent annually. It has 43,000 members, 85 per cent of whom earn below $2,500. Membership entails saving at least $10 a month with TCC.

There are additional benefits apart from cheaper loans and dividends.

The Common Good Fund offers hospitalisation grants, funds for disabled children, heart check-up subsidies and even fruit baskets for hospital stays.

Last year, it gave out $60,000 in hospitalisation grants to close to 300 members and $50,000 in scholarships and bursaries to 250 members and their children.

TCC Credit disburses $10 million to $15 million in loans annually, or upwards of 100 cases a month, with 60 per cent being personal loans, another 30 per cent for education and the rest for renovations, weddings and mortgages.

Ms Gunasekaran said many cases, especially in the past two years, involved the co-op consolidating all a member's debts so he pays only to one source.

"This way, the member doesn't have to keep rolling over his debt and have it snowball. Instead, he sees the debt amount go down slowly, every month," said Ms Gunasekaran.

TCC Credit does need to write off some debts in death cases, but this is a small number.

The co-op has a team of credit control officers who monitor cases closely and call members in cases of default.

"We counsel them, find out what's wrong. If it's a change of job or a lost job, we would reschedule the loan and allow them to defer payment," said Ms Gunasekaran.

One member, who wanted to be known only as Mr Lim, 44, was about $40,000 in debt to about 10 licensed moneylenders when he approached TCC Credit for a consolidation loan three months ago.

"With bank loans, everything is systemised; it doesn't matter what your personal circumstances are. TCC Credit looks at the same financial ratios, but treats every case on its merits," he said.

The director in business development added that of course there were system checks, "if you're a high risk borrower, they have to protect their members' interest".

As part of Mr Lim's application process, he had to write a letter to the loan committee stating how he ended up in debt, what action he took to correct it, and if he took a loan, how he would sustain financial stability and not go back to his old errors.

Mr Lim signed up for counselling with Credit Counselling Singapore, and registered with the National Council on Problem Gambling. He also reduced his expenditure, gave up his car and downgraded his home.

TCC Credit then asked him for several guarantors.

"TCC Credit tries to find solution for its members. I can certainly attest to the fact that they have a human factor in their processing," he said.

"Everyone has a story, a reason why they got into debt. For me, I was cornered and down to my last resort. I was very stressed, which affected my work and personal life. Then I got the good news that my debt consolidation loan was approved."

Mr Lim added that when TCC Credit disburses such loans, rather than getting a cheque for a full amount - which may easily be squandered, rather than used to pay off debts - it wrote out cheques for sums owed to each of his debtors.

He then took cheques individually to his debtors, obtained letters of discharge and sent these back to TCC Credit.

"It's a very financially responsible way of loan dispensation," he said.

Mr Jayaram, too, said he is happy TCC Credit gave him that second chance, allowing him to move on from his youthful imprudence.

He became a financial planner after finishing his degrees in business management. Today, he is a trainer in sales and customer service.

"I think many people need to know there is hope (for their finances). There are alternatives other than loansharks; here, there is support and help. Why not go to people who can help you and not exploit you?"

Poly co-op making good and doing good
Cooperatives are social enterprises that are run and owned by their own members. In the last of a four-part series, we feature Ngee Ann Polytechnic's cooperative. It has earmarked $300k of its $1.6m reserves as financial aid for students
By Audrey Kang, The Straits Times, 4 Jun 2014

IF BUSINESS students at Ngee Ann Polytechnic need a case study for a successful enterprise, they need only look to the thriving cooperative running on their own campus.

The co-op, as it is known, began with just $3,000 in capital - and modest ambitions - in 1971 but has grown to a busy operation with annual revenue of around $1 million from its two outlets.

Its scope has expanded with its revenue. The co-op was initially a bookshop, started by students and staff wanting a more convenient outlet, but it now offers products ranging from stationery to snacks and electronic products.

The second outlet started in 1991 to serve students whose classrooms were not near the existing shop.

Co-op director Yoong Ee Chuan told The Straits Times: "As a cooperative business, we do try and stay profitable, but (give) the surplus (in revenue) back to the school at the same time."

Turnover hit $1.2 million last year, drawing on a student population of about 16,000.

The business has more than $1.6 million in its reserves, of which $300,000 is earmarked for financial aid to be given to students over the next 10 years.

It pays out about $29,000 in bursaries and scholarship a year, as well as sponsors prizes for school events such as the annual talent show.

The co-op is able to stay profitable, in part owing to the assistance it receives from government schemes.

Profit for the last year was only $5,900, which was then channelled back to its reserves.

It does not qualify for the Productivity and Innovation Credit scheme run by the Inland Revenue Authority of Singapore but gets other forms of aid.

The Singapore National Co-Operative Federation recently helped fund an upgrade of software and, last year, the co-op received $20,000 from the Special Employment Credit as it employs several workers over age 62.

It has eight full-time staff in managerial, accounting, administrative and retail roles, seven part-timers who run the shop and one intern from the school per semester.

Mr Ho Chang Jun, 20, who graduated with a Diploma in Business Studies last month, interned at the co-op as part of his school attachment.

"Before my internship, I never really paid much attention to the shop, but I found out that it's much more than just a bookshop," said Mr Ho, who helped the co-op with social media and events management.

"Even though I was from business (course), I didn't have a clear idea on what a cooperative is. It's quite fulfilling as I get to learn more and see that the co-op gives back to the school."

The co-op is continually looking at ways to remain viable while still helping staff and students.

Mr Yoong said it is looking at setting up an online business and seeking feedback from customers on what new products it should feature. "Students (who make up the majority of the customers) can afford better things and want different things now, so we try our best to meet their needs," he said.

The co-op has also recently started to offer advisory and accounting services to other smaller cooperatives, such as Bendemeer Secondary School's, for a small fee.